If you’re having trouble making ends meet every month, you’re not alone. Many Canadian debtors find themselves in financial distress.
Are you aware that a Cambridge Consumer Proposal just might be the best option to get relief from overwhelming credit card or other unsecured debt?
What is a Cambridge Consumer Proposal?
Essentially, a Consumer Proposal is a cross between:
- A binding debt settlement agreement negotiated with your creditors, where you may be able to reduce the unsecured debt you owe by up to 70%; and
- A debt consolidation, where you will be required to make one fixed, affordable payment every month during the life of the proposal (which can last for a period of up to five years).
What debts are covered in a Consumer Proposal?
A Consumer Proposal covers almost all unsecured debt, including:
- Credit card debt;
- Payday loans;
- Past due utility bills;
- Tax debts; and
- Student loan debt over 7 years old.
It bears noting here that secured debts, such as a home with a mortgage or a car loan, are not covered in a Consumer Proposal.
Who negotiates my debt down?
Many Canadian debtors have attempted to negotiate their debts with credit card companies or other lenders unsuccessfully.
In a Cambridge Consumer Proposal, a Licensed Insolvency Trustee (LIT) negotiates the debt on your behalf. LITs typically have more success dealing directly with creditors because creditors are used to dealing with LITs.
That’s because federally licensed and regulated LITs are the only professionals authorized by the Canadian government to assist debtors with bankruptcy and Consumer Proposals. They’ve done this before and typically know what a creditor will accept by way of a proposal.
What are the benefits of a Consumer Proposal?
Here are just a few of the advantages that a Consumer Proposal offers debtors:
- You pay back less than what you owe.
- You get legal protection from your creditors upon filing. Your creditors are stopped from pursuing any enforcement action against you during a proposal – and this includes phone calls, collection letters, wage garnishments, etc.
- You freeze interest on your unsecured debts.
- You get to keep your assets, including your home and car.
- Your monthly payment is fixed during the life of the proposal, even if you get a raise, promotion, or come into a windfall of money. Any extra income is yours to keep.
So I’ll only have to repay 30% of what I owe?
Not necessarily. Every proposal is unique and it really depends on your financial circumstances, what you own, your income, etc. Your LIT will determine up front how much your monthly payment should be based on a comprehensive review of your particular financial circumstances.
Am I eligible for a Cambridge Consumer Proposal?
Yes, if you:
- Are a resident of Canada or have property in Canada;
- Can afford to repay at least some of your debts;
- Are insolvent, meaning your debts are greater than your assets or you can’t keep up with your payments; and
- Have unsecured debt under $250,000, not including your mortgage.
How do I get started filing a Consumer Proposal in Cambridge?
Your first step is to contact an LIT. LITs are arguably the best financial advisors in Canada, with the education, credentials, and experience to assist you with every debt relief option out there – from simple budgeting to loan consolidation to bankruptcy.
Contact a Licensed Insolvency Trustee Today
At your free initial consultation, we’ll review your financial situation and advise you of every debt relief option you have. The sooner you contact us, the more options you may have available to you. It’s our mission to see you get the debt relief you deserve.
Call 519-310-JOHN(5646) today to learn if a Cambridge Consumer Proposal is the best option for you.